Friday, November 30, 2007
CREDIT CARD ISUES
WHAT IS A CREDIT CARD
Credit cards looks like plastic sized shaped playing cards which is able to be use as cash in terms of a short term loans. This so call credit cards is usable anywhere at all depending on the type of card subscribed. Today there are many types of credit cards and their use are becoming worldwide. There are many types of credit card master card, visa card, American express and etc. Somehow credit cards also their pros and cons.
Good side of credit cards
The good side of credit card is you don't need to bring along a whole load of cash to buy things that you want. It is made out of plastic, handy sized, durable and far more lighter than bring a bunch of cash in your wallet. They are excepted almost everywhere you go and the transaction is so easy to use, just swipe and go. In this way you don't need to see the amount of money you have to pay for bills, food or anything. No heavy coin change, no fuss to count money, no need to count your cash!!
Bad side of credit cards
Now, the bad side of credit card is you are paying interest for your usage. You are paying for the application of the card with annual fees. Payment via credit cards has an interest of 1.5% monthly or 18% annually. This not included late charge payments for the installments. By using a credit card, you cannot estimate your real expenditure. So you are actually buy thing that you cannot afford. Statement is given monthly basis, so you will only know what you spend at the end of the month! The thing is about credits card is, you are not getting richer by the day. You are getting poorer because of the installment that must be settled down. Credit cards is a loan and loans are bad for your financial freedom.
Lastly you will have headache on settling bills and end up in a very tight budget. Worse still you might even be bankrupt because of misused of credit cards. Finally you wouldn't have a financial freedom and spend the rest of your life figuring out how to settle all your debts from loans and credit cards. So think and look into other ways of getting income. Keep on searching......
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credit cards
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